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Press Release

06/03/2004

LG Electronics to Supply WCDMA Mobile Phones to Hutchison 3G

LG Electronics to Supply

LG Electronics to Supply
WCDMA Mobile Phones to Hutchison 3G

- LGE TO SUPPLY 3 MILLION SETS OF 3G MOBILE PHONES TO HUTCHISON 3G
COMPANIES
- PRESENTING GSM/GPRS-COMPATIBLE, DUAL-BAND WCDMA CAMERA PHONES WITH
VIDEO TELEPHONY, VOD, MMS, AND STATE-OF-THE-ART MULTIMEDIA FEATURES
- DEMONSTRATING LGE'S 3G TECHNOLOGY AND CAPABILITY:
INVIGORATING 3G MOBILE PHONE BUSINESS IN THE GLOBAL MARKET

LG Electronics (CEO: S.S.Kim, 06657.KS) has concluded an agreement to supply 3 million sets of 3G WCDMA mobile phones to Hutchison 3G, the world-class 3G operator, which markets its services under the "3" brand. The agreement thus brightens the prospects for 3G handset business in the global market.

LGE has signed an agreement with Hutchison to supply 3 million sets of third-generation WCDMA dual-band mobile phones that are compatible with Europe's mobile GSM/GPRS systems. This is the first time that a Korean company has concluded such an agreement.

LGE will supply its 3G mobile phones in a total volume of 3 million to Hutchison 3G companies: the first delivery of U8110 handsets was shipped last month and the remaining volume of handsets is to be supplied by the end of this year.

The WCDMA mobile phone is (LG-U8110 series) a European-style 3G terminal that features a state-of-the-art folding camera phone with a 65,000-color TFT-LCD, enabling video telephony, VOD, MMS, and other sophisticated multimedia functions.

Since'97, LGE has aimed to secure advanced technological competitiveness to keep pace with world-class companies adopting the asynchronous IMT-2000 (WCDMA) system, and to explore overseas markets, thus leading the development of WCDMA equipment among Korean competitors.

In particular, LGE unveiled a video telephony-capable, single-mode WCDMA handset (model: LG-K8000) in the 2002 Korea-Japan World Cup, the first of its kind in Korea. Ericsson, Nortel, and other asynchronous equipment companies tested the handset's compatibility with their systems. As such, LGE was recognized for its next-generation terminal technology. Earlier this year, in response to the domestic demand for universal WCDMA mobile phones, LGE developed a dual-band, dual-mode (DBDM) mobile phone (model: LG-KW2000), the first of its kind in the world.

LGE sees this massive supply of WCDMA mobile phones as proof of its preparedness toward 3G technologies and expansion of business capabilities. The company expects to boost the 3G mobile phone sales and prove its leadership in the third-generation mobile phone market.

LGE has secured a foothold in Europe, the largest GSM market, by having made a successful entry into major markets such as the U.K., France, and Germany. By supplying 3G mobile phones to Hutchison 3G, LGE will enhance its image as a leading third-generation mobile phone maker, and strengthen its position as a major global player in the CDMA/GSM systems as well as other products.

Mr. Kie-Hong Suh, Executive Vice President at Telecommunications Equipment & Handset Company at LGE, said, "the massive supply of WCDMA handsets signals that LGE has emerged as a true, strong global player in the third-generation mobile phone market." He then added, "LGE will lead the world's mobile handset market with its 3G mobile phone manufacturing technology and networking capability, and also by establishing a medium to long-term strategic partnership with Hutchison 3G, the global 3G services leader."


About Hutchison 3G

Hutchison 3G (H3G) is the leading global player in the 3G arena, holding licenses in ten markets with total population coverage of approx. 175 million. These include Australia, Austria, Denmark, Hong Kong, Ireland, Israel, Italy, Norway, the UK and Sweden.

In just three years, H3G has built an entirely new network, achieving probably the world's fastest rollout of a radio network in the entire telecom industry. Marketed globally under the 3 brand, H3G is the first operator in the world to provide dual-mode 3G services. To date, 3 services has commenced in seven markets including Italy, the UK, Australia, Austria, Sweden, Denmark and Hong Kong, and announced more than one million subscribers in March this year.

H3G is a division of the Hong Kong-based multinational conglomerate Hutchison Whampoa. (For more information, please visit www.three.com)

About LG Electronics, Inc.

LG Electronics, Inc. (06657.KS) was established in'58 as the
pioneer in the Korean consumer electronics market. The company is a major global force in electronics and information and communications products with more than 64,000 employees working in 76 overseas subsidiaries and marketing units around the world. With annual total revenues of more than US $16.9 billion (non-consolidated),
LG Electronics comprises three main business companies: Digital Display & Media, Digital Appliance, Telecommunication Equipment & Handset.

The LG Telecommunication Equipment & Handset Company provides total solutions ranging from wired and wireless handsets to telecommunication equipment. The company is a leader in the innovation and development of cutting -edge technologies in next-generation wireless telecommunications and is steadily expanding its global
market share in 3G (WCDMA / cdma2000) wireless systems.

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